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Iqiyi
(NASDAQ:IQ)
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Rating:46Neutral
Price Target:
$0.99
▼(-29.79% Downside)
Action:Reiterated
Date:07/04/26
The score is held down primarily by weakening financial performance (shrinking revenue, return to losses, and TTM cash flow deterioration) and bearish technicals (price below key moving averages with negative MACD). The earnings call adds some offset from improving operational initiatives (AI content, international membership growth, cost control), but valuation support is limited given the negative P/E and no dividend yield provided.
Positive Factors
AI-driven content scale
Large-scale AI content and creator platform materially lowers marginal content costs and accelerates catalog growth. A broad, low-cost library supports sustained ad inventory, licensing and subscriber engagement over months, improving unit economics and enabling repeatable production at scale.
Negative Factors
Persistent revenue decline
Sustained top-line contraction erodes operating leverage and limits funding for original content and marketing. Continued revenue declines reduce pricing power and bargaining strength with advertisers and licensors, making it harder to restore normalized margins without structural demand recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven content scale
Large-scale AI content and creator platform materially lowers marginal content costs and accelerates catalog growth. A broad, low-cost library supports sustained ad inventory, licensing and subscriber engagement over months, improving unit economics and enabling repeatable production at scale.
Read all positive factors
Iqiyi (IQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$974.67M
Dividend YieldN/A
Average Volume (3M)5.86M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-6.04%
EPS Growth-339.14%
CountryUS
Employees4,673
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.70
Shares Outstanding530,582,300
10 Day Avg. Volume4,825,606
30 Day Avg. Volume5,863,426
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)0.97
Price to Sales (P/S)0.47
P/FCF Ratio1.33K
Enterprise Value/Market Cap18.46
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit6.51
Enterprise Value/Ebitda98.26
Forecast
1Y Price Target
$1.56Price Target Upside10.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$26.09B
Iqiyi Business Overview & Revenue Model
Company Description
Operating under the iQIYI brand, iQIYI, Inc. is a prominent provider of online entertainment services throughout the People's Republic of China. Its extensive portfolio of offerings encompasses internet video content, online gaming, live streaming...
How the Company Makes Money
iQIYI primarily makes money through a mix of subscription-based and advertising-based monetization of its video streaming platform, alongside content distribution and other online entertainment services.
1) Membership (subscriptions): A significa...
Iqiyi Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call highlights a mix of near-term headwinds and strategic progress. Top-line revenue declined sequentially largely due to seasonality and fewer third-party distribution deals (total revenue -8%, ad -8%, distribution -54%), and the company remains modestly loss-making on a non-GAAP basis (~RMB 149M, ~2% margin) with limited operating cash (RMB 186M). Offsetting these weaknesses are clear operational and strategic positives: sequential membership growth and longer subscription duration, strong international membership expansion (overseas membership +40% YoY; Indonesia +80% YoY; Brazil/Mexico >100% YoY), broad adoption of Nadou Pro (10,000+ creators) and large-scale AI content initiatives (3,000+ AI micro dramas; 14,000+ micro animation titles), improved monetization for micro dramas (+60% revenue per inventory unit YoY), and disciplined cost reductions (content cost -2%, operating expenses -10%). Management also advanced IP commercialization (iQIYI LAND, merchandise records) and capital actions to strengthen the balance sheet. Overall, strategic momentum in AI, international expansion and content monetization outweigh the near-term revenue and cash challenges, suggesting a cautiously positive outlook.Positive Updates
Membership Revenue Sequential Recovery
Membership services revenue of RMB 4.2 billion, up 2% sequentially; driven by premium titles (Pursuit of Jade, The Punishment 2, How Dare You!?, The Devil Between Us) and improved upselling/longer average subscription duration for monthly subscribers; higher-tier F7 membership continued to scale.
Negative Updates
Total Revenue Decline
Total revenues were RMB 6.2 billion, down 8% sequentially, indicating near-term top-line pressure despite membership recovery.
Read all updates
Q1-2026 Updates
Positive
Negative
Membership Revenue Sequential Recovery
Membership services revenue of RMB 4.2 billion, up 2% sequentially; driven by premium titles (Pursuit of Jade, The Punishment 2, How Dare You!?, The Devil Between Us) and improved upselling/longer average subscription duration for monthly subscribers; higher-tier F7 membership continued to scale.
Read all positive updates
Company Guidance
Management guided toward product, geographic and AI-driven growth while calling out many concrete metrics: they plan to launch over 100 short‑form dramas in 2026 and build an Internet feature‑film slate, prioritize Q2 actions to maximize ad sales and reactivate dormant members (including smart‑TV partnerships and June 18 promotions), expand iQIYI LAND to Kaifeng and Beijing, and commercialize Nadou Pro (live since Apr 20 with >10,000 active creators and ~100 iQIYI original projects) and international rollout; Q1 operating metrics referenced included total revenue RMB 6.2bn (‑8% seq), membership RMB 4.2bn (+2% seq), online ads RMB 1.2bn (‑8% seq), content distribution RMB 358.7m (‑54% seq), other RMB 426.7m (‑22% seq), content cost RMB 3.7bn (‑2% seq), operating expenses RMB 1.2bn (‑10% seq), net cash from operations RMB 186m, non‑GAAP operating loss RMB 149m (~2% margin) and cash/resources RMB 4.0bn; content/AI scale metrics included >3,000 AI micro‑dramas launched in Q1 and a micro‑animation/AI library of >14,000 titles, and overseas membership momentum cited as >40% YoY (Indonesia +80% YoY; Brazil & Mexico +100% YoY) — financial actions include a proposed HK listing and a USD 100m buyback program (to date ~6.45m ADS repurchased for ~USD 8m) and debt reduction via repurchase of the 6.5% 2028 convertible notes.Iqiyi Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
46
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.87B | 27.29B | 29.23B | 31.87B | 29.00B | 30.55B |
| Gross Profit | 2.76B | 5.75B | 7.27B | 8.77B | 6.68B | 3.04B |
| EBITDA | 183.11M | 14.11B | 1.82B | 17.25B | 14.34B | 12.10B |
| Net Income | -353.66M | -206.31M | 764.06M | 1.93B | -136.21M | -6.19B |
Balance Sheet | ||||||
| Total Assets | 46.17B | 46.68B | 45.76B | 44.59B | 46.05B | 42.47B |
| Cash, Cash Equivalents and Short-Term Investments | 3.61B | 4.67B | 4.47B | 5.38B | 7.92B | 4.35B |
| Total Debt | 14.22B | 15.25B | 14.19B | 15.29B | 22.53B | 17.57B |
| Total Liabilities | 33.15B | 33.37B | 32.39B | 32.41B | 39.70B | 36.80B |
| Stockholders Equity | 13.07B | 13.32B | 13.37B | 12.09B | 6.25B | 5.19B |
Cash Flow | ||||||
| Free Cash Flow | -214.71M | 9.72M | 1.94B | 3.25B | -340.34M | -6.35B |
| Operating Cash Flow | -47.94M | 102.92M | 2.11B | 3.35B | -70.57M | -5.95B |
| Investing Cash Flow | -543.34M | -318.51M | -2.44B | -1.74B | 265.98M | 1.26B |
| Financing Cash Flow | -742.99M | 1.04B | -1.37B | -4.29B | 4.47B | -2.96B |
Iqiyi Technical Analysis
Negative
1.41
Price Trends
1.11
Negative
1.29
Negative
1.73
Negative
Market Momentum
-0.03
Negative
42.55
Neutral
74.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQ, the sentiment is Negative. The current price of 1.41 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 1.11, and below the 200-day MA of 1.73, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 74.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQ.
Iqiyi Risk Analysis
Iqiyi disclosed 96 risk factors in its most recent earnings report. Iqiyi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iqiyi Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $172.78B | 15.89 | 10.29% | 1.10% | 4.02% | 27.66% | |
75 Outperform | $14.75B | 32.53 | 67.11% | 2.47% | 12.55% | -0.50% | |
74 Outperform | $21.13B | 104.61 | 7.64% | ― | 16.78% | ― | |
72 Outperform | $326.97B | 24.57 | 49.24% | ― | 18.57% | 45.93% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $66.39B | -38.38 | -4.94% | ― | -2.78% | 84.26% | |
46 Neutral | $974.67M | -9.75 | -0.92% | ― | -6.04% | -339.14% |
* Communication Services Sector Average
IQ
Iqiyi
1.01
-0.76
-42.94%
DIS
Walt Disney
99.50
-21.90
-18.04%
NFLX
Netflix
77.65
-51.31
-39.79%
ROKU
Roku
142.43
54.37
61.74%
WMG
Warner Music Group
28.28
-0.59
-2.06%
WBD
Warner Bros
26.48
15.46
140.29%
Iqiyi Corporate Events
iQIYI Names New Chief Financial Officer to Steer Next Growth Phase
Jul 2, 2026
iQIYI, Inc., a major player in China’s online entertainment video industry, operates a technology-driven platform that delivers professionally produced and other video content to a large user base. The company monetizes its audience through ...
iQIYI Swings to First-Quarter Loss as Revenue Falls, Repurchases 2028 Notes
May 18, 2026
iQIYI reported unaudited results for the quarter ended March 31, 2026, showing a 13% year-on-year decline in revenue to RMB6.23 billion as membership, advertising, content distribution and other revenues all fell, with lighter content output and m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.